[Congressional Record Volume 150, Number 44 (Thursday, April 1, 2004)]
[Senate]
[Pages S3583-S3588]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HOLLINGS (for himself, Mr. McCain, and Mr. Breaux):
  S. 2279. A bill to amend title 46, United States Code, with respect 
to maritime transportation security, and for other purposes; to the 
Committee on Commerce, Science, and Transportation.
  Mr. HOLLINGS. Mr. President, less than 1 year ago, we wrapped up work 
on the port security bill that was signed into law as the Maritime 
Security Act of 2002, MTSA. That act mandated and outlined changes that 
are needed to shore up security in our ports, and established for the 
first time a system to coordinate, plan and implement port security at 
U.S. seaports. While this was landmark legislation, much still needs to 
be done with respect to the implementation of the requirements mandated 
by this law.
  I am very dissatisfied with the current Administration's disinterest 
in paying for port security, and would point out that we are 
approaching a crisis, as Federal mandates are being rolled out for 
security without Federal support. I have tried over and over to focus 
the attention of the Administration on this crucial need and pushed to 
no avail in the Senate to get the resources necessary to address this 
problem. But to date, I have gotten little support. In addition to 
appropriating much needed funds for port security, it has become 
apparent that keeping up with security needs at our ports is an ever 
evolving task, and that we may have to refocus our efforts and push 
harder to ensure that we coordinate our policies and maximize the 
limited resources that we have in this area.
  Today, in order to keep up with these needs, I am introducing the 
``Maritime Transportation Security Act of 2004'', along with Senator 
McCain, and Senator Breaux. I am pleased to have worked on this with 
Senator McCain, the Chairman of our Committee, as I often remark, while 
he has no coastline, he has worked with those of us who do have ports 
to work on these crucial port security issues. I am also pleased to 
introduce this legislation with Senator Breaux, for he has truly been 
one of the leading advocates of the importance of maritime shipping and 
the merchant marine in the U.S. Senate. He has done invaluable work for 
us on the Commerce Committee, and is a true expert in the field. He 
will be sorely missed for his expertise on all maritime issues, 
although I am sure, that in the future, he will still be the Captain of 
some small boat, yacht, or maybe even a ship.
  Even though the Coast Guard, Customs and other agencies charged with 
the implementation of these measures have aggressively taken initial 
steps necessary to set up our future structure for seaport security 
there is still much to do, and effective action needs to occur to help 
coordinate and crystallize security policies and objectives. The 
Maritime Transportation Security Act of 2004 would attempt to mandate a 
coordinated Federal approach to several areas of concern in port 
security. It would also attempt to set performance standards for 
certain areas in port security and add a few enhancements to last 
year's legislation. Most importantly the bill would require a user fee 
to be established to help pay for the port security mandates.
  Specifically, this bill would impose in rem liability to secure 
payment of penalties and fines under the Act and to help ensure 
compliance with the security requirements imposed by the MTSA. The bill 
would also include provisions to increase security in waterside cargo 
areas, and ensure that cargo contents of imported marine cargo 
containers would be required to be cleared within 5 days of entering a 
U.S. port, or alternatively removed after 5 days without being cleared, 
to a regulated warehouse where it would be opened and reviewed to 
verify its contents. This would in no way change any claim to 
possession of the goods. Importantly, the bill would require DHS to 
evaluate the policies and practices of sealing empty containers. 
According to the Federal Maritime Commission, over 4 million containers 
were imported into the United States empty. At a recent hearing, a 
representative from the ILWU longshoremen's union pointed out that 
treatment of empties and the sealing practices of these containers 
varied from locale to locale. This bill would require an analysis of 
current practices at U.S. ports in order to determine what steps need 
to occur in order to make sure that the transport of empty containers 
does not present a threat of terrorism, and whether a Federal policy is 
justified in this area.

  The bill would require the Administration to produce a coordinated 
plan for collecting, analyzing, and disseminating maritime intelligence 
information collected by Federal agencies on ships, cargo, crew members 
and passengers. This intelligence is used to determine which ships, 
cargo, or crew warrant further inspection. This section of the bill 
requires further development of a maritime intelligence system to 
collect and analyze information concerning the crew, passengers and 
cargoes carried on vessels operating in waters under the jurisdiction 
of the United States. This mandate essentially restates existing law 
since it appears that the agencies have actually grown further apart 
since the passage of the Maritime Transportation Security Act. The 
provision in this bill would require a plan on how the Administration 
will coordinate collection and analysis of maritime information, and 
how agency personnel might be co-located to maximize resources and 
coordinate analysis. This plan must also indicate when long range 
vessel tracking will be integrated into this intelligence information. 
Additionally, the plan would require the government to analyze private 
sector resources to evaluate how they could be used to help monitor and 
differentiate legitimate moves of trade from those actions and players 
that are more suppositious. The Federal Government does not have a lot 
of experience monitoring commercial maritime activity, and I believe 
they will have to employ private sector expertise to assist in this 
endeavor.
  The report shall also consider the abilities of the Department of 
Navy to collect and analyze commercial maritime information. The U.S. 
Navy probably has the most resources dedicated to the evaluation of 
commercial shipping activities, but are precluded from sharing this 
information. In light of our need for better information on commercial 
shipping, this policy has to be reevaluated. A maritime intelligence 
system needs to be set up to work together so that Federal agencies, 
State, local and the private sector can coordinate their law 
enforcement activities. Maritime intelligence on commercial ocean 
shipping is currently gathered by the Coast Guard, Customs, INS, and 
other agencies such as the Federal Maritime Commission under separate 
systems. Only the Coast Guard and the Navy currently work together. We 
lag far behind in this area, and each agency is operating independent 
of others. We are not getting the full picture of what is happening out 
there. It is crucial that we have the best information available so 
that we can target our relatively limited resources with maximum 
efficiency. Further, the information has to be disseminated in a 
fashion to maximize its utility, while still protecting that 
information which needs to be kept confidential. Collection and 
analysis of commercial maritime information is a key element of our 
port security that needs more focus and has to be addressed if we are 
to adequately protect our Nation.
  Importantly, the bill will require the Administration to come up with 
cargo security plans to evaluate targeting systems to determine whether 
they are effective in deterring and protecting against potential acts 
of terrorism from cargo. In the event that targeting is inadequate 
protection, DHS would be required to increase the amount of cargo being 
non-intrusively inspected or x-rayed by two over the next year. The 
bill would also require the consolidation of intermodal cargo security 
programs that have the same security goals while establishing criteria 
and

[[Page S3584]]

performance goals for these security programs, which are currently 
operating completely independent of each other, and require certain 
other cargo security program enhancements. Voluntary cargo security 
programs are not the answer to the important problem of securing our 
Nation from terrorist attacks. Firm standards and goals must be in 
place to ensure that items that we know we don't want in marine 
containers are not actually in marine containers. The legislation will 
also require a report on the amount of actual inspections that are 
being done at foreign seaports.
  While the Container Security Initiative was rolled out with great 
fanfare to work with foreign ports to inspect cargo before they get to 
U.S. ports, the question remains whether we are actually getting much 
bang for the buck. The fundamental question that needs to be addressed 
is whether foreign nations have been willing to use their security 
screening equipment for our benefit, and to what degree have they been 
willing to screen cargo for the benefit of our Nation. The legislation 
will require a report to determine whether this program needs 
adjustment, or is a cost-effective measure to ensure safe cargo 
movements into the U.S., and to update us on the progress in the 
installation of a system of radiation detection at U.S. ports.
  Additionally, this legislation will redirect our efforts to help 
ensure that we can verify that security is in place to prevent an act 
of terrorism, and not place us in a position of having to rely on 
documentation and the attestations or documentation of third parties in 
order to determine whether we need to take actions to protect the 
public. The Administration has not even started to implement the 
certification program required to certify ``secure systems of 
transportation,'' 46 U.S.C. 70116, and they must get going on this 
vital initiative. Otherwise, it would only take one good liar to breach 
our system of defense. Although I understand we cannot inspect every 
piece of cargo, we have a credible system in place to actively increase 
cargo inspections, and implement a system that would ultimately allow 
us to reopen U.S. ports to commerce, in the event of an attack.
  Additionally, the bill also would require a report from the Coast 
Guard on the benefits of utilizing joint operational centers at United 
States seaports to implement area security plans. This report should 
incorporate lessons learned from the three centers that have already 
been established, such as ``Operation SeaHawk'' in Charleston, SC, and 
consider which security programs could be effectively fused into these 
joint operational centers. The Commandant of the Coast Guard would be 
required by this bill to report on the effectiveness of these centers 
for port security and determine if it would be beneficial and cost 
effective to establish centers in additional areas that pose a 
significant security risk, and to utilize them to implement area 
security plans.
  The bill will also make sure that port security grants are reviewed 
and approved, as was mandated under the terms of the MTSA, and all 
grants are subject to the review of the Coast Guard Captain of the 
Port, the regional Maritime Administration representative, and other 
Transportation Security Administration security officials as well as 
other DHS security experts, before the grants are approved. This grant 
program is not open-ended, it is intended to help the private sector 
and State and municipal governments achieve compliance with Federally 
approved facility plans and area maritime security plans, and the 
changes to the statute will ensure that the grant program operates the 
way we intended it to operate.

  The bill also requires the Maritime Administration and the State 
Department to evaluate existing foreign assistance programs to 
determine whether the existing aid programs can be utilized to help 
foreign nations achieve compliance with the international standard set 
for port security. The MTSA requires the Coast Guard to set up a 
mechanism to review the practices of foreign ports to ensure that they 
have implemented adequate security measures, and ultimately, they can 
take steps that would result in the closure of commerce from ports in 
non-compliance with international security standards. It is in the best 
interests of everyone potentially impacted by such a policy 
implication, if we review our foreign aid programs to determine whether 
aid can be used to implement the necessary security measures.
  The bill also requires the Maritime Administration to work with the 
Federal Law Enforcement Training Center, FLETC, and other DHS port 
security agencies such as TSA, Coast Guard and Customs to determine how 
to supplement their training programs to include a greater 
familiarization with commercial maritime practices. Port security law 
enforcement is much different in the aftermath of September 11, and 
officials involved in regulation and policing shipping will now have to 
approach it from a different perspective, and to be able to identify 
anomalies and irregularities, in order to best focus our limited police 
resources over an immense volume of trade. It is my understanding that 
the Maritime Administration has been utilizing resources at the U.S. 
Merchant Marine Academy and working with FLETC to formalize port 
security training. I think that this change will help our Federal 
agencies bolster their existing training programs, and achieve a 
greater understanding of potential security issues that could arise, 
and will be a healthy addition to work already done by the Maritime 
Administration and FLETC.
  The bill rewrites the DHS mandate to conduct research and 
development, and would require the Science Directorate within DHS to be 
more accountable to Congress for those actions they are taking to 
develop the types of technology necessary to address security at our 
seaports. Importantly, the bill also requires the Coast Guard to 
evaluate the security risks and policies very carefully of nuclear 
facilities on or adjacent to navigable waterways to ensure that we have 
security policies in place to prevent acts of terrorism from occurring 
from on or under navigable waterways. Most nuclear facilities are on or 
adjacent to navigable waterways, and I want the Coast Guard to exercise 
the highest degree of security in their treatment of these facilities 
and the threat posed as a result of maritime commerce or the proximity 
to navigable waterways.
  Most importantly, this bill attempts to address the fundamental issue 
that will face the nation as we implement the MTSA--will sufficient 
funding be in place to assure that our ports and agencies will robustly 
pursue security, or we will have to rely on sham security programs, or 
efforts severely restricted by funding that result in de minimus or 
desultory security efforts. When the Senate and House conferenced on 
the port security bill in the fall of 2002, the Senate conferees 
insisted on establishing direct funding for port security programs 
through a user fee, identical to the airline security fee, which would 
help defray the significant costs for the new port security mandates. 
The Administration declined to dedicate any resources for port 
security, and they declined to support the Senate's user fee. Unable to 
reach agreement with the House conferees and the Administration, I 
agreed to authorize just the necessary funds, but the President was 
required by law to report to Congress within 6 months on a funding 
proposal to assist States and their ports in complying with security 
mandates for Federal security plans. That report has never been 
prepared and is 9 months overdue.

  When the President's budget for FY 2004 came out, after the U.S. 
Coast Guard had estimated that it would take $7.4 billion of funding in 
order to comply with the port security requirements, there was no 
funding for port authority compliance in that year's budget resolution. 
I offered an amendment to the FY 2004 Budget Resolution which was 
unanimously accepted to add $1 billion to help defray the first year 
costs of port security--ultimately it was dropped from Conference. Two 
weeks later, the President was presented with a direct opportunity to 
fund port security programs: Congressional consideration of his 
emergency supplemental appropriations bill to pay for the war in Iraq 
and bolster homeland security. Again, the Administration funding 
request included no funding for port authorities to help them comply 
with the Federal mandate, so I offered an amendment to add $1 billion 
to the supplemental specifically to help ports meet the new security 
mandates. Despite unanimous approval in

[[Page S3585]]

the Senate 3 weeks earlier, the amendment was opposed by the 
Administration and defeated on the Senate floor on a straight party 
line vote.
  Last year, I made another effort to address the port security funding 
inadequacies during consideration of the FY 2004 Homeland Security 
Appropriations bill. Again, the Administration proposed no funding for 
port security grants in their 2004 request, so I offered an amendment 
to the bill to direct $300 million specifically to port security grants 
without increasing the overall cost of the bill. The Administration 
opposed the funding increase, and the amendment was defeated largely 
along party lines with only three Republicans supporting the amendment.
  Until this year's budget the President has not requested one dime 
specifically for port security. He has opposed efforts to mandate the 
funds be raised from the users of the system, and this year's budget 
request is for only $46 million. Despite opposition from the White 
House, Congress has directed appropriations that have resulted in 
grants of $450 million to ports to help ensure compliance with the 
Federal security mandates, and so I know that this issue is an area of 
major concern. Ultimately, the funding issues must be addressed, and 
this bill proposes a user fee to pay for the costs of compliance of 
port security. I had considered the possibility of authorizing the 
Administration to either generate funds for port security via a user 
fee, or alternatively mandate that funds be directly transferred from 
funds collected by Customs duties, but because of jurisdictional issues 
determined not to do so. The maritime industry supports this approach, 
and I am not opposed to this approach, but want only to ensure, that 
one way or another, we have the necessary funding in place to set up 
the system of port security that this nation deserves. Simply put, 
there is just too much at stake to hope that security emerges.
  This bill seeks to continue the work to correct the security and 
terrorism prevention needs at our maritime borders. There is much to be 
done and there is a continued need for government and industry 
cooperation. This bill works on some of that need, yet the major need 
is funding for port security, which I hope that we will be able to 
address in the Senate very soon.
  I ask unanimous consent the text of the bill to be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2279

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Maritime 
     Transportation Security Act of 2004''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents
Sec. 2. In rem liability; enforcement; pier and wharf security costs.
Sec. 3. Maritime information.
Sec. 4. Intermodal cargo security plan.
Sec. 5. Joint operations center for port security.
Sec. 6. Maritime transportation security plan grants.
Sec. 7. Assistance for foreign ports.
Sec. 8. Federal and State commercial maritime transportation training.
Sec. 9. Port security research and development.
Sec. 10. Nuclear facilities in maritime areas.
Sec. 11. Transportation worker background investigation programs.
Sec. 12. Security service fee.
Sec. 13. Port security capital fund.

     SEC. 2. IN REM LIABILITY; ENFORCEMENT; PIER AND WHARF 
                   SECURITY COSTS.

       (a) In General.--Chapter 701 of title 46, United States 
     Code, is amended--
       (1) by redesignating section 70117 as 70120; and
       (2) by inserting after section 70116 the following:

     ``Sec.  70117. In rem liability for civil penalties and 
       certain costs

       ``(a) In General.--Any vessel subject to the provisions of 
     this chapter, which is used in violation of this chapter or 
     any regulations issued hereunder shall be liable in rem for 
     any civil penalty assessed pursuant to section 70120 and may 
     be proceeded against in the United States district court for 
     any district in which such vessel may be found.
       ``(b) Reimbursable Costs.--
       ``(1) In general.--Any vessel subject to the provisions of 
     this chapter shall be liable in rem for the reimbursable 
     costs incurred by any valid claimant related to 
     implementation and enforcement of this chapter with respect 
     to the vessel, including port authorities, facility or 
     terminal operators, shipping agents, Federal, State, or local 
     government agencies, and other persons to whom the management 
     of the vessel at the port of supply is entrusted, and any 
     fine or penalty relating to reporting requirements of the 
     vessel or its cargo, crew, or passengers, and may be 
     proceeded against in the United States district court for any 
     district in which such vessel may be found.
       ``(2) Reimbursable costs defined.--In this subsection the 
     term `reimbursable costs' means costs incurred by any service 
     provider, including port authorities, facility or terminal 
     operators, shipping agents, Federal, State, or local 
     government agencies, or other person to whom the management 
     of the vessel at the port of supply is entrusted, for--
       ``(A) vessel crew on board, or in transit to or from, the 
     vessel under lawful order, including accommodation, 
     detention, transportation, and medical expenses; and
       ``(B) required handling under lawful order of cargo or 
     other items on board the vessel.

     ``Sec. 70118. Enforcement by injunction or withholding of 
       clearance

       ``(a) Injunction.--The United States district courts shall 
     have jurisdiction to restrain violations of this chapter or 
     of regulations issued hereunder, for cause shown.
       ``(b) Withholding of Clearance.--
       ``(1) If any owner, agent, master, officer, or person in 
     charge of a vessel is liable for a penalty or fine under 
     section 70120, or if reasonable cause exists to believe that 
     the owner, agent, master, officer, or person in charge may be 
     subject to a penalty under section 70120, the Secretary may, 
     with respect to such vessel, refuse or revoke any clearance 
     required by section 4197 of the Revised Statutes of the 
     United States (46 U.S.C. App. 91).
       ``(2) Clearance refused or revoked under this subsection 
     may be granted upon filing of a bond or other surety 
     satisfactory to the Secretary.

     ``Sec. 70119. Security of piers and wharfs

       ``(a) In General.--Notwithstanding any provision of law, 
     the Secretary shall require any uncleared, imported 
     merchandise remaining on the wharf or pier onto which it was 
     unladen for more than 5 calendar days to be removed from the 
     wharf or pier and deposited in the public stores or a general 
     order warehouse, where it shall be inspected for 
     determination of contents, and thereafter a permit for its 
     delivery may be granted.
       ``(b) Penalty.--The Secretary may impose an administrative 
     penalty of $5,000 for each bill of lading for general order 
     merchandise remaining on a wharf or pier in violation of 
     subsection (a).''.
       (b) Conforming Amendment for In Rem Liability Provision in 
     Chapter 701.--Section 2 of the Act of June 15, 1917 (50 
     U.S.C. 192) is amended--
       (1) by striking ``Act,'' each place it appears and 
     inserting ``title,''; and
       (2) by adding at the end the following:
       ``(d) In rem liability.--Any vessel subject to the 
     provisions of this title, which is used in violation of this 
     title, or any regulations issued hereunder, shall be liable 
     in rem for any civil penalty assessed pursuant to subsection 
     (c) and may be proceeded against in the United States 
     district court for any district in which such vessel may be 
     found.
       ``(e) Injunction.--The United States district courts shall 
     have jurisdiction to restrain violations of this title or of 
     regulations issued hereunder, for cause shown.
       ``(f) Withholding of clearance.--
       ``(1) If any owner, agent, master, officer, or person in 
     charge of a vessel is liable for a penalty or fine under 
     subsection (c), or if reasonable cause exists to believe that 
     the owner, agent, master, officer, or person in charge may be 
     subject to a penalty or fine under subsection (c), the 
     Secretary may, with respect to such vessel, refuse or revoke 
     any clearance required by section 4197 of the Revised 
     Statutes of the United States (46 U.S.C. App. 91).
       ``(2) Clearance refused or revoked under this subsection 
     may be granted upon filing of a bond or other surety 
     satisfactory to the Secretary of the Department in which the 
     Coast Guard is operating.''.
       (c) Empty Containers.--Within 90 days after the date of 
     enactment of this Act, the Secretary of Homeland Security 
     shall review United States ports and transmit to the Senate 
     Committee on Commerce, Science, and Transportation and the 
     House of Representatives Committee on Transportation and 
     Infrastructure a report on the practices and policies in 
     place to secure shipment of empty containers. The Secretary 
     shall include in the report recommendations with respect to 
     whether additional regulations or legislation is necessary to 
     ensure the safe and secure delivery of cargo and to prevent 
     potential acts of terrorism involving such containers.
       (d) Clerical amendment.--The chapter analysis for chapter 
     701 of title 46, United States Code, is amended by striking 
     the last item and inserting the following:

``70117. In rem liability for civil penalties and certain costs
``70118. Enforcement by injunction or withholding of clearance
``70119. Security of piers and wharfs
``70120. Civil penalty''.

     SEC. 3. MARITIME INFORMATION.

       Within 90 days after the date of enactment of this Act, the 
     Secretary of Homeland Security shall submit a report to the 
     Senate Committee on Commerce, Science, and Transportation and 
     the House of Representatives Committee on Transportation and 
     Infrastructure that provides a preliminary

[[Page S3586]]

     plan for the implementation of section 70113 of title 46, 
     United States Code. The plan shall--
       (1) provide the identification of Federal agencies with 
     maritime information relating to vessels, crew, passengers, 
     cargo, and cargo shippers;
       (2) establish a timeline for coordinating the efforts of 
     those Federal agencies in the collection of maritime 
     information;
       (3) establish a timeline for the incorporation of 
     information on vessel movements derived through the 
     implementation of sections 70114 and 70115 of title 46, 
     United States Code;
       (4) include recommendations on co-locating agency personnel 
     in order to maximize expertise, minimize cost, and avoid 
     redundancy;
       (5) include recommendations on how to leverage information 
     on commercial maritime information collected by the 
     Department of the Navy, and identify any legal impediments 
     that would prevent or reduce the utilization of such 
     information outside the Department of the Navy;
       (6) include recommendations on educating Federal officials 
     on commercial maritime operations in order to facilitate the 
     identification of security risks posed through commercial 
     maritime transportation operations;
       (7) include recommendations on how private sector resources 
     could be utilized to collect or analyze information, along 
     with a preliminary assessment of the availability and 
     expertise of private sector resources;
       (8) include recommendations on how to disseminate 
     information collected and analyzed through Federal maritime 
     security coordinator while considering the need for 
     nondisclosure of sensitive security information and the 
     maximizing of security through the utilization of State, 
     local, and private security personnel; and
       (9) include recommendations on how the Department could 
     help support a maritime information sharing and analysis 
     center for the purpose of collecting information from public 
     and private entities, along with recommendations on the 
     appropriate levels of funding to help disseminate maritime 
     security information to the private sector.

     SEC. 4. INTERMODAL CARGO SECURITY PLAN.

       (a) In General.--In addition to the plan submitted under 
     section 3, within 180 days after the date of enactment of 
     this Act, the Secretary of Homeland Security shall submit a 
     report to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Transportation and Infrastructure containing the following:
       (1) Secure systems of transportation (46 U.S.C. 70116).--A 
     plan, along with timelines, for the implementation of section 
     70116 of title 46, United States Code. The plan shall--
       (A) provide an update on current efforts by the Department 
     of Homeland Security could be incorporated into the 
     certification process outlined in section 70116 to ensure the 
     physical screening or inspection of imported cargo;
       (B) provide a preliminary assessment of resources necessary 
     to evaluate and certify ``Secure Systems of Transportation'', 
     and the resources necessary to validate that ``Secure Systems 
     of Transportation'' are operating in compliance with the 
     certification requirements; and
       (C) contain an analysis of the feasibility of establishing 
     a user fee in order to be able to evaluate, certify, and 
     validate ``Secure Systems of Transportation''.
       (2) Radiation detectors.--A report on progress in the 
     installation of a system of radiation detection at all major 
     United States seaports, along with a timeline and expected 
     completion date for the system. In the report, the Secretary 
     shall include a preliminary analysis of any issues related to 
     the installation of the radiation detection equipment, as 
     well as a cost estimate for completing installation of the 
     system.
       (3) Non-intrusive inspection at foreign ports.--A report--
       (A) on whether and to what extent foreign seaports have 
     been willing to utilize screening equipment at their ports to 
     screen cargo, including the number of cargo containers that 
     have been screened at foreign seaports, and the ports where 
     they were screened;
       (B) indicating which foreign ports may be willing to 
     utilize their screening equipment for cargo exported for 
     import into the United States, and a recommendation as to 
     whether, and to what extent, United States cargo screening 
     equipment will be required to be purchased and stationed at 
     foreign seaports for inspection; and
       (C) indicating to what extent additional resources and 
     program changes will be necessary to maximize scrutiny of 
     cargo in foreign seaports.
       (4) Compliance with security standard Programs.--A plan to 
     establish, validate, and ensure compliance with security 
     standards that would require ports, terminals, vessel 
     operators, and shippers to adhere to security standards 
     established by or consistent with the National Transportation 
     System Security Plan. The plan shall indicate what resources 
     will be utilized, and how they would be utilized, to ensure 
     that companies operate in compliance with security standards.
       (b) Evaluation of Cargo Inspection Targeting System for 
     International Intermodal Cargo Containers.--
       (1) In general.--Within 6 months after the date of 
     enactment of this Act, and annually thereafter, the Inspector 
     General of the Department of Homeland Security shall evaluate 
     the system used by the Department to target international 
     intermodal containers for inspection and report the results 
     of the evaluation to the Senate Committee on Commerce, 
     Science, and Transportation and the House of Representatives 
     Committee on Transportation and Infrastructure. In conducting 
     the evaluation, the Inspector General shall assess--
       (A) the effectiveness of the current tracking system to 
     determine whether it is adequate to prevent international 
     intermodal containers from being used for purposes of 
     terrorism;
       (B) the sources of information used by the system to 
     determine whether targeting information is collected from the 
     best and most credible sources and evaluate data sources to 
     determine information gaps and weaknesses;
       (C) the targeting system for reporting and analyzing 
     inspection statistics, as well as testing effectiveness;
       (D) the competence and training of employees operating the 
     system to determine whether they are sufficiently capable to 
     detect potential terrorist threats; and
       (E) whether the system is an effective system to detect 
     potential acts of terrorism and whether additional steps need 
     to be taken in order to remedy deficiencies in targeting 
     international intermodal containers for inspection.
       (2) Increase in inspections.--If the Inspector General 
     determines in any of the reports required by paragraph (1) 
     that the targeting system is insufficiently effective as a 
     means of detecting potential acts of terrorism utilizing 
     international intermodal containers, then within 12 months 
     after that report, the Secretary of Homeland Security shall 
     double the number of containers subjected to intrusive or 
     non-intrusive inspection at United States ports or to be 
     shipped to the United States at foreign seaports.
       (c) Report and Plan Formats.--The Secretary and the 
     Inspector General may submit any plan or report required by 
     this section in both classified and redacted formats if the 
     Secretary determines that it is appropriate or necessary.

     SEC. 5. JOINT OPERATIONS CENTER FOR PORT SECURITY.

       The Commandant of the United States Coast Guard shall 
     report to Congress, within 180 days after the date of 
     enactment of this Act, on the potential benefits of 
     establishing joint operational centers for port security at 
     certain United States seaports. The report shall consider the 
     3 Joint Operational Centers that have been established at 
     Norfolk, Charleston, San Diego, and elsewhere and compare and 
     contrast their composition and operational characteristics. 
     The report shall consider--
       (1) whether it would be beneficial to establish linkages to 
     Federal maritime information systems established pursuant to 
     section 70113 of title 46, United States Code;
       (2) whether the operational centers could be beneficially 
     utilized to track vessel movements under sections 70114 and 
     70115 of title 46, United States Code;
       (3) whether the operational centers could be beneficial in 
     the facilitation of intermodal cargo security programs such 
     as the ``Secure Systems of Transportation Program'';
       (4) the extent to which such operational centers could be 
     beneficial in the operation of maritime area security plans 
     and maritime area contingency response plans and in 
     coordinating the port security activities of Federal, State, 
     and local officials; and
       (5) include recommendations for the number of centers and 
     their possible location, as well as preliminary cost 
     estimates for the operation of the centers.

     SEC. 6. MARITIME TRANSPORTATION SECURITY PLAN GRANTS.

       Section 70107(a) of title 46, United States Code, is 
     amended to read as follows:
       ``(a) In General.--The Under Secretary of Homeland Security 
     for Border and Transportation Security shall establish a 
     grant program for making a fair and equitable allocation of 
     funds to implement Area Maritime Transportation Security 
     Plans and to help fund compliance with Federal security plans 
     among port authorities, facility operators, and State and 
     local agencies required to provide security services. Grants 
     shall be made on the basis of the need to address 
     vulnerabilities in security subject to review and comment by 
     the appropriate Federal Maritime Security Coordinators and 
     the Maritime Administration. The grant program shall take 
     into account national economic and strategic defense concerns 
     and shall be coordinated with the Director of the Office of 
     Domestic Preparedness to ensure that the grant process is 
     consistent with other Department of Homeland Security grant 
     programs.''.

     SEC. 7. ASSISTANCE FOR FOREIGN PORTS.

       Section 70109 of title 46, United States Code, is amended--
       (1) by striking ``The Secretary'' in subsection (b) and 
     inserting ``The Administrator of the Maritime 
     Administration''; and
       (2) by adding at the end the following:
       ``(c) Foreign Assistance Programs.--The Administrator of 
     the Maritime Administration, in coordination with the 
     Secretary of State, shall identify foreign assistance 
     programs that could facilitate implementation of port 
     security antiterrorism measures in foreign countries. The 
     Administrator and the Secretary shall establish a program to 
     utilize those programs that are capable of implementing port 
     security antiterrorism

[[Page S3587]]

     measures at ports in foreign countries that the Secretary 
     finds, under section 70108, to lack effective antiterrorism 
     measures.''.

     SEC. 8. FEDERAL AND STATE COMMERCIAL MARITIME TRANSPORTATION 
                   TRAINING.

       Section 109 of the Maritime Transportation Security Act of 
     2002 (46 U.S.C. 70101 note) is amended--
       (1) by redesignating subsections (c) through (f) as 
     subsections (d) through (g), respectively; and
       (2) by inserting after subsection (b) the following:
       ``(c) Federal and State Commercial Maritime Transportation 
     Training.--The Secretary of Transportation shall establish a 
     curriculum, to be incorporated into the curriculum developed 
     under subsection (a)(1), to educate and instruct Federal and 
     State officials on commercial maritime and intermodal 
     transportation. The curriculum shall be designed to 
     familiarize those officials with commercial maritime 
     transportation in order to facilitate performance of their 
     commercial maritime and intermodal transportation security 
     responsibilities. In developing the standards for the 
     curriculum, the Secretary shall consult with each agency in 
     the Department of Homeland Security with maritime security 
     responsibilities to determine areas of educational need. The 
     Secretary shall also coordinate with the Federal Law 
     Enforcement Training Center in the development of the 
     curriculum and the provision of training opportunities for 
     Federal and State law enforcement officials at appropriate 
     law enforcement training facilities.

     SEC. 9. RESEARCH AND DEVELOPMENT.

       (a) In General.--Section 70107 of title 46, United States 
     Code, is amended by striking subsection (i) and inserting the 
     following:
       ``(i) Research and Development.--
       ``(1) In general.--As part of the research and development 
     program within the Science and Technology directorate, the 
     Secretary of Homeland Security shall conduct investigations, 
     fund pilot programs, award grants, and otherwise conduct 
     research and development across the various portfolios 
     focused on making United States ports safer and more secure. 
     Research conducted under this subsection may include--
       ``(A) methods or programs to increase the ability to target 
     for inspection vessels, cargo, crewmembers, or passengers 
     that will arrive or have arrived at any port or place in the 
     United States;
       ``(B) equipment to detect accurately explosives, chemical, 
     or biological agents that could be used to commit terrorist 
     acts against the United States;
       ``(C) equipment to detect accurately nuclear or 
     radiological materials, including scintillation-based 
     detection equipment capable of signalling the presence of 
     nuclear or radiological materials;
       ``(D) improved tags and seal designed for use on shipping 
     containers to track the transportation of the merchandise in 
     such containers, including `smart sensors' that are able to 
     track a container throughout its entire supply chain, detect 
     hazardous and radioactive materials within that container, 
     and transmit that information to the appropriate law 
     enforcement authorities;
       ``(E) tools, including the use of satellite tracking 
     systems, to increase the awareness of maritime areas and to 
     identify potential terrorist threats that could have an 
     impact on facilities, vessels, and infrastructure on or 
     adjacent to navigable waterways, including underwater access;
       ``(F) tools to mitigate the consequences of a terrorist act 
     on, adjacent to, or under navigable waters of the United 
     States, including sensor equipment, and other tools to help 
     coordinate effective response to a terrorist action; and
       ``(G) applications to apply existing technologies from 
     other areas or industries to increase overall port security.
       ``(2) Implementation of technology.--
       ``(A) In general.--In conjunction with ongoing efforts to 
     improve security at United States ports, the Director of the 
     Science and Technology Directorate, in consultation with 
     other Department of Homeland Security agencies with 
     responsibility for port security, may conduct pilot projects 
     at United States ports to test the effectiveness and 
     applicability of new port security projects, including--
       ``(i) testing of new detection and screening technologies;
       ``(ii) projects to protect United States ports and 
     infrastructure on or adjacent to the navigable waters of the 
     United States, including underwater access; and
       ``(iii) tools for responding to a terrorist threat or 
     incident at United States ports and infrastructure on or 
     adjacent to the navigable waters of the United States, 
     including underwater access.
       ``(B) Authorization of appropriations.--There are 
     authorized to be appropriated to the Secretary of Homeland 
     Security $35,000,000 for each of fiscal years 2005 through 
     2009 to carry out pilot projects under subparagraph (A).
       ``(3) Administrative provisions.--
       ``(A) No duplication of effort.--Before making any grant, 
     the Secretary of Homeland Security shall coordinate with 
     other Federal agencies to ensure the grant will not be used 
     for research and development that is already being conducted 
     with Federal funding.
       ``(B) Accounting.--The Secretary of Homeland Security shall 
     by regulation establish accounting, reporting, and review 
     procedures to ensure that funds made available under 
     paragraph (1) are used for the purpose for which they were 
     made available, that all expenditures are properly accounted 
     for, and that amounts not used for such purposes and amounts 
     not expended are recovered.
       ``(C) Recordkeeping.--Recipients of grants shall keep all 
     records related to expenditures and obligations of funds 
     provided under paragraph (1) and make them available upon 
     request to the Inspector General of the Department of 
     Homeland Security and the Secretary of Homeland Security for 
     audit and examination.''.
       (b) Annual Report.--Within 30 days after the beginning of 
     each fiscal year from fiscal year 2005 through fiscal year 
     2009, the Director of the Science and Technology Directorate 
     shall submit a report describing its research that can be 
     applied to port security to the Senate Committee on Commerce, 
     Science, and Transportation, the House of Representatives 
     Committee on Science, and the House of Representatives Select 
     Committee on Homeland Security. The report shall--
       (1) describe any port security-related research, including 
     grants and pilot projects, that were conducted in the 
     preceding fiscal year;
       (2) describe the amount of Department of Homeland Security 
     resources dedicated to research that can be applied to port 
     security;
       (3) describe the steps taken to coordinate with other 
     agencies within the Department to ensure that research 
     efforts are coordinated with port security efforts;
       (4) describe how the results of the Department's research, 
     as well as port security related research of the Department 
     of Defense, will be implemented in the field, including 
     predicted timetables;
       (5) lay out the plans for research in the current fiscal 
     year; and
       (6) include a description of the funding levels for the 
     research in the preceding, current, and next fiscal years.

     SEC. 10. NUCLEAR FACILITIES IN MARITIME AREAS.

       (a) Waterways.--Section 70103(b) is amended by adding at 
     the end thereof the following:
       ``(5) Waterways located near nuclear facilities.--
       ``(A) Identification and security evaluation.--The 
     Secretary shall--
       ``(i) identify all nuclear facilities on, adjacent to, or 
     in close proximity to navigable waterways that might be 
     damaged by a transportation security incident;
       ``(ii) in coordination with the Secretary of Energy, 
     evaluate the security plans of each such nuclear facility for 
     its adequacy to protect the facility from damage or 
     disruption from a transportation security incident 
     originating in the navigable waterway, including threats 
     posed by navigation, underwater access, and the introduction 
     of harmful substances into water coolant systems.
       ``(B) Rectification of deficiencies.--The Secretary, in 
     coordination with the Secretary of Energy, shall take such 
     steps as may be necessary or appropriate to correct any 
     deficiencies in security identified in the evaluations 
     conducted under subparagraph (A).
       ``(C) Report.--As soon as practicable after completion of 
     the evaluation under subparagraph (A), the Secretary shall 
     transmit a report, in both classified and redacted format, to 
     the Senate Committee on Commerce, Science, and 
     Transportation, the House of Representatives Committee on 
     Transportation and Infrastructure, and the House of 
     Representatives Select Committee on Homeland Security--
       ``(i) describing the results of the identification and 
     evaluation required by subparagraph (A);
       ``(ii) describing the actions taken under subparagraph (B); 
     and
       ``(iii) evaluating the technology utilized in the 
     protection of nuclear facilities (including any such 
     technology under development).''.
       (b) Vessels.--Section 70103(c)(3) of title 46, United 
     States Code, is amended--
       (1) by striking ``and'' after the semicolon in subparagraph 
     (F);
       (2) by striking ``facility.'' in subparagraph (G) and 
     inserting ``facility; and''; and
       (3) by adding at the end the following:
       ``(H) establish a requirement, coordinated with the 
     Department of Energy, for criminal background checks of all 
     United States and foreign seamen employed on vessels 
     transporting nuclear materials in the navigable waters of the 
     United States.''.

     SEC. 11. TRANSPORTATION WORKER BACKGROUND INVESTIGATION 
                   PROGRAMS.

       Within 120 days after the date of enactment of this Act, 
     the Secretary of Homeland Security, after consultation with 
     the Secretary of Transportation, shall transmit a report to 
     the Senate Committee on Commerce, Science, and Transportation 
     and the House of Representatives Committee on Transportation 
     and Infrastructure--
       (1) making recommendations (including legislative 
     recommendations, if appropriate or necessary) for 
     harmonizing, combining, or coordinating requirements, 
     procedures, and programs for conducting background checks 
     under section 70105 of title 46, United States Code, section 
     5103a(c) of title 49, United States Code, section 44936 of 
     title 49, United States Code, and other provisions of Federal 
     law or regulations requiring background checks for 
     individuals engaged in transportation or transportation-
     related activities; and

[[Page S3588]]

       (2) setting forth a detailed timeline for implementation of 
     such harmonization, combination, or coordination.

     SEC. 12. SECURITY SERVICE FEE.

       (a) In General.--Chapter 701 of title 46, United States 
     Code, as amended by section 2, is further amended by adding 
     at the end the following:

     ``Sec. 70121. Security service fee

       ``(a) In General.--
       ``(1) Security fee.--Within 90 days after the date of 
     enactment of the Maritime Transportation Security Act of 
     2004, the Secretary of Homeland Security shall assess and 
     collect an international port security service fee on 
     commercial maritime transportation entities that benefit from 
     a secure system of international maritime transportation to 
     pay for the costs of providing port security services. The 
     amount of the fees assessed and collected under this 
     paragraph and paragraph (2) shall, in the aggregate, be 
     sufficient to provide the services and levels of funding 
     described in section 70122(c).
       ``(2) International transshipment security fee.--The 
     Secretary shall also assess and collect an international 
     maritime transshipment security user fee for providing 
     security services for shipments of cargo and transportation 
     of passengers entering the United States as part of an 
     international transportation movement by water through 
     Canadian or Mexican ports at the same rates as the fee 
     imposed under paragraph (1). The fee authorized by this 
     paragraph shall not be assessed or collected on 
     transshipments from--
       (A) Canada after the date on which the Secretary determines 
     that an agreement between the United States and Canada, or
       (B) Mexico after the date on which the Secretary determines 
     that an agreement between the United States and Mexico,

     has entered into force that will provide equivalent security 
     regimes and international maritime security user fees of the 
     United States and that country for transshipments between the 
     countries.
       ``(b) Schedule of Fees.--In imposing fees under subsection 
     (a), the Secretary shall ensure that the fees are reasonably 
     related to the costs of providing services rendered and the 
     value of the benefit derived from the continuation of secure 
     international maritime transportation.
       ``(c) Imposition of Fee.--
       ``(1) In general.--Notwithstanding section 9701 of title 31 
     and the procedural requirements of section 553 of title 5, 
     the Secretary shall impose the fees under subsection (a) 
     through the publication of notice in the Federal Register and 
     begin collection of the fee within 60 days of the date of 
     enactment of the Maritime Transportation Security Act of 
     2004, or as soon as possible thereafter. No fee shall be 
     assessed more than once, and no fee shall be assessed for 
     international ferry voyages.
       ``(2) Means of collection.--The Secretary shall prescribe 
     procedures to collect fees under this section. The Secretary 
     may use a department, agency, or instrumentality of the 
     United States Government or of a State or local government to 
     collect the fee and may reimburse the department, agency, or 
     instrumentality a reasonable amount for its services.
       ``(3) Subsequent modification of fee.--After imposing a fee 
     under subsection (a), the Secretary may modify, from time to 
     time through publication of notice in the Federal Register, 
     the imposition or collection of such fee, or both. The 
     Secretary shall evaluate the fee annually to determine 
     whether it is necessary and appropriate to pay the cost of 
     activities and services, and shall adjust the amount of the 
     fee accordingly.
       ``(4) Limitation on collection.--No fee may be collected 
     under this section except to the extent that the expenditure 
     of the fee to pay the costs of activities and services for 
     which the fee is imposed is provided for in advance in an 
     appropriations Act.
       ``(d) Administration of Fees.--
       ``(1) Fees payable to secretary.--All fees imposed and 
     amounts collected under this section are payable to the 
     Secretary.
       ``(2) Information.--The Secretary may require the provision 
     of such information as the Secretary decides is necessary to 
     verify that fees have been collected and remitted at the 
     proper times and in the proper amounts.
       ``(e) Receipts Credited as Offsetting Collections.--
     Notwithstanding section 3302 of title 31, any fee collected 
     under this section--
       ``(1) shall be credited as offsetting collections to the 
     account that finances the activities and services for which 
     the fee is imposed;
       ``(2) shall be available for expenditure only to pay the 
     costs of activities and services for which the fee is 
     imposed; and
       ``(3) shall remain available until expended.
       ``(f) Refunds.--The Secretary may refund any fee paid by 
     mistake or any amount paid in excess of that required.
       ``(g) Sunset.--The fees authorized by subsection (a) may 
     not be assessed after September 31, 2009.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     701 of title 46, United States Code, as amended by section 2, 
     is amended by adding at the end the following:

``70121. Security service fee''.

     SEC. 13. PORT SECURITY CAPITAL FUND.

       (a) In General.--Chapter 701 of title 46, United States 
     Code, as amended by section 11, is further amended by adding 
     at the end the following:

     ``Sec. 70122. Port security capital fund.

       ``(a) In General.--There is established within the 
     Department of Homeland Security a fund to be known as the 
     Port Security Capital Fund. There are appropriated to the 
     Fund such sums as may be derived from the fees authorized by 
     section 70121(a).
       ``(b) Purpose.--Amounts in the Fund shall be available to 
     the Secretary of Homeland Security--
       ``(1) to provide financial assistance to port authorities, 
     facility operators, and State and local agencies required to 
     provide security services to defray capital investment in 
     transportation security at port facilities in accordance with 
     the provisions of this chapter;
       ``(2) to provide financial assistance to those entities 
     required to provide security services to help ensure 
     compliance with Federal area maritime security plans; and
       ``(3) to help defray the costs of Federal port security 
     programs.
       ``(c) Allocation of Funds.--
       ``(1) Funds derived from security fees.--From amounts in 
     the Fund attributable to fees collected under section 
     70121(a)(1) and (2)--
       ``(A) no less than $400,000,000 (or such amount as may be 
     appropriate to reflect any modification of the fees under 
     section 70121(c)(3)) shall be made available each fiscal year 
     for grants under section 70107 to help ensure compliance with 
     facility security plans or to help implement Area Maritime 
     Transportation Security Plans;
       ``(B) funds shall be made available to the Coast Guard for 
     the costs of implementing sections 70114 and 70115 fully by 
     the end of fiscal year 2006;
       ``(C) funds shall be made available to the Coast Guard for 
     the costs of establishing command and control centers at 
     United States ports to help coordinate port security law 
     enforcement activities and implementing Area Maritime 
     Security Plans, and may be transferred, as appropriate, to 
     port authorities, facility operators, and State and local 
     government agencies to help them defray costs associated with 
     port security services;
       ``(D) funds shall be made available to the Under Secretary 
     of Homeland Security for Border and Transportation Security 
     for the costs of implementing cargo security programs, 
     including the costs of certifying secure systems of 
     transportation under section 70116;
       ``(E) funds shall be made available to the Under Secretary 
     of Homeland Security for Border and Transportation Security 
     for the costs of acquiring and operating nonintrusive 
     screening equipment at United States ports; and
       ``(F) funds shall be made available to the Transportation 
     Security Administration for the costs of implementing of 
     section 70113 and the collection of commercial maritime 
     intelligence (including the collection of commercial maritime 
     transportation information from the private sector), of which 
     a portion shall be made available to the Coast Guard and the 
     Customs Service only for the purpose of coordinating the 
     system of collecting and analyzing information on vessels, 
     crew, passengers, cargo, and intermodal shipments.
       ``(2) Transshipment fees.--Amounts in the Fund attributable 
     to fees collected under section 70121(a)(3), shall be made 
     available to the Secretary to defray the costs of providing 
     international maritime transshipment security at the United 
     States borders with Canada and Mexico.
       ``(d) Utilization Reports.--The Commandant of the Coast 
     Guard and the Secretary of Homeland Security shall report 
     annually to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Transportation and Infrastructure on utilization of amounts 
     received from the Fund.
       ``(e) Letters of Intent.--The Secretary of Homeland 
     Security, or his delegate, may execute letters of intent to 
     commit funding to port sponsors from the Fund.''.
       (f) Conforming Amendment.--The chapter analysis for chapter 
     701 of title 46, United States Code, as amended by section 
     11, is amended by adding at the end the following:

``70122. Port security capital fund''.

                          ____________________